3. [15][108] Horizons Ventures, a venture capital firm established by Hong Kong business magnate Li Ka-shing, led a US$10.8 million strategic investment in Windward, an Israeli maritime data and analytics company. [36] With the increasing economic cooperation between the two countries, China is spearheading an increasing number of partnerships with Israeli universities such as the Tel Aviv University and Tsinghua Universitys $300 million joint research center, a $130 million donation to the Technion, and a program devoted entirely to teaching the Israeli business culture at Peking University. China Paradigm interviewed Rami Blachman, the founder of China Israel Innovation Accelerator and business advisor at AgriNation Venture Capital, to have a comprehensive knowledge of Israeli technology companies in China, to best identify the emerging markets in China, and to look into the market strategies in various Chinese cities.. Rami Blachman, bringing Israeli technology companies in China The Israeli ban on exporting defense technologies to China goes back to 2000, when intense American pressure led Israel to cancel the sale of the Phalcon Airborne Early Warning System to China. It has even utilized its telecom companies like Huaweis sprawling reach in the West to collect pieces of sensitive information. [13] Since 2013, Chinese investors have begun to show a growing interest in Israeli firms. The dialogue will be in an inter-agency format, with annual meetings held alternately in the two countries, the first of which is scheduled to take place in Israel this fall. To bring down the cost of production for the many consumer and industrial . Xu is one of the first Chinese intelligence officers to be extradited from Europe to the U.S. and sentenced. There are similar concerns about Chinese investmentin Israel. GAO YANPING", "Jewish History in China Boosting Sino-Israeli Relations", "How Israel Used Weapons and Technology to Become an Ally of China", "Will the Middle Kingdom Join the Middle East Peace Quartet? Sino-Israeli trade stood at almost $15.3 billion in 2018, 14 an over 4,200 percent increase in real dollar terms since 1995. China and Israel's cooperation in technological innovation is highly complementary, said Zhao Dongliang, director of the Changzhou Israel Innovation Park, the first experimental zone for innovation cooperation established by the two governments. David Ivri, the director-general of the Israeli Defense Ministry, admitted on Jan. 3 that Israel had sold China "some technology on aircraft" but added that it was not U.S. technology and that the contracts were "very small in magnitude." [32] On Jan. 6, Aded Ben-Ami, the spokesperson for Prime Minister Yitzhak Rabin, again denied that . In Hebrew : - Yechasei Yisrael-Sin) comprise the diplomatic, economic, cultural, and military ties between the People's Republic of China and the State of Israel.. Over the past decades he has been involved in peace building and diplomacy efforts in the Middle East and North Africa. [120] In 2017, China became Israel's fastest growing source of tourists as 2017 was the first year when the number of Chinese tourists surpassed 100,000. "The Evolution of Sino-Israeli Relations". [75] He came a guest of the Israeli Chief of Staff Benny Gantz, who received him with an honor guard at the Kirya military headquarters in Tel Aviv. Chinas demand for alternative commercial technology trade partners in light of tightening American trade restrictions is an unexpected economic boon to Israel, but the importance of chips for technological advancement and military use means Israels position in this technology triangle is bound to attract Washington's attention. Registering also lets you comment on articles and helps us improve your experience. The primary concern regarding investment relates to Chinese ownership of companies that might possess sensitive technology or data; concerns over construction are focused on the use of infrastructure projects to further Chinese foreign policy goals. Although traditional espionage is an accepted part of statecraft worldwide, the U.S. government has repeatedly distinguished between such spying and commercial espionage. Security concerns, both domestic and from Washington, have shaped Israels sales to China from the beginning. As of 2011, some sixty Israeli companies are listed on the Nasdaq. [37][38], Though Israel established diplomatic relations with China in 1992, the ties between the Chinese and Jewish people remain centuries old in addition to Israel and China being products of ancient civilizations dating back thousands of years. In fact, China is Israel's second-largest trading partner and source of foreign investment by country, after the United States. This sparked a heated discussion in the Israeli press and the academy, as well as a special discussion by the Israeli cabinet. It is located at the east side and south side of Shantou University. [88], In 2009, China Radio International (CRI) began broadcasting in Hebrew. [80][12][81][82] The economic synergy has served the two respective countries greatly where Israel's global technological prowess combined with China's global economic influence, industrial manufacturing capabilities, and marketing expertise made cooperation between the two nations inevitable. All RAND reports undergo rigorous peer review to ensure high standards for research quality and objectivity. The former is a belated American response to Chinas strategic Belt and Road Initiative (BRI) for infrastructure, which was launched in 2013. Israels willingness to walk away fromarms deals with the Chinese at the United States request is unsurprising given the countries strong military and political relationship. ", "Ynetnews Opinion - US alienation leading to Israeli-Chinese renaissance", "China's century-old support for Zionism surfaces in letter", "Israel and China quietly form trade bonds", Israel Strengthening Representation in China, "Netanyahu: Israel and China must cooperate on security and trade", "Why China Must Pay Attention to the Israel-Palestine Conflict", "How Israel is winning the social media war in China", "Chinese ambassador to Israel found dead at home", "Chinese ambassador to Israel is found dead in his home", "China warns Israel not to let U.S. pressure hurt relations", "Similarities Between Chinese People and Jewish People", "Stop and smell the blossoming ties between Israel and China", "China's ambassador to Israel, Zhao Jun, is in love", "The Chinese Believe That the Jews Control America. C.V. Starr & Co. [101][36] At present, there are thousands of Jewish and Israeli expatriate businessmen residing in various Chinese cities, mainly Shanghai and Beijing looking to do business with Chinese entrepreneurs and Chinese technology companies. The 13-year-old Haifa company has developed a futuristic technology called ExAblate, a non-invasive, magnetic resonance-guided focused ultrasound surgery system that thermally ablates, or destroys, tumors inside the body. Warnings", "Israel and China quietly form trade bonds (pg. now's the time to act. Berton, Peter. On January 23, 1992, the Foreign Minister of Israel David Levy paid a four-day visit to Beijing, preceding the formal establishment of ties. [70] Some estimate that Israel sold arms worth US$4 billion to China in this period. In 1987 Israel's Prime Minister, Shimon Peres, appointed Amos Yudan to set up the first official Government owned company (Copeco Ltd[24]) to establish and foster commercial activities between companies in China and Israel. President Biden later welcomed Saudi support for the Partnership for Global Infrastructure and Investment (PGII) initiative by the United States, and the signing of a memorandum on intergovernmental cooperation in deployment of 5G and 6G communication systems. The United States and Israel, a recipient of over $3 billion in U.S. military aid, often co-develop weapons and coordinate their sales to ensure that sensitive technology doesnt fall into enemy hands. Dense economic ties must be balanced against Israel's deeper and far more important ties with the US. Chinese investment in sensitive technologies and construction of major Israeli infrastructure projects present distinct concerns for Israel and the United States. Performance & security by Cloudflare. [103] In September 2011, the Israeli Minister of Transport, Israel Katz, stated that China and Israel were discussing the construction of a high-speed rail link joining the Mediterranean Sea with the Red Sea. By registering you agree to the terms and conditions. ExAblate: InSightec. Seven years ago, in the face of mounting costs, the United States withdrew . [121][102], Israel's increasing defense cooperation with China has caused concern in Western nations, particularly the United States, which is the largest foreign supplier of military equipment to Israel. [12][13] China is one of the few countries in the world to concurrently maintain warm relations with Israel, Palestine, and the Muslim world at large. Danit Gal is a consultant and researcher focusing on technology ethics, governance, safety, security, and strategy. ", "Israel-China Alliance Moves Forward With $2 Billion 'Red-Med' Freight Rail Link Alternative to Suez Canal", "Israel-China "water-trade" to rise significantly", "Zev Sufott, Israel's first ambassador to China, dies aged 86", "Israel's first-ever ambassador to China dies at 86", "Harbin people congratulate Olmert on Israeli election success", "After three years of negotiations, Netanyahu to visit China", "Netanyahu set to scrap China trip, again, amid election fever", "Shanghai's Jews celebrate historic synagogue reopening", "Cantor Pushes China to Open Historic Synagogue", "China FM: Iran deal 'first step' toward settling nuclear issue - The Times of Israel", "Wang Yi meets Palestinian & Israeli leaders to boost peace talks", "Israeli, Chinese Presidents Call for Increased Cooperation Despite U.S. Li has been the pioneer of Chinese investment in Israel and with his investments in Israeli high-tech, Li set the stage for Hong Kong's business elite stressing that it is financially sound and even necessary for the future of Chinese economic prosperity to invest in emerging Israeli technology companies. [123] Israel's decision drew condemnation from China, which stated that the cancellation would hurt bilateral ties. [83] Other critics argue that growing Chinese involvement will endanger Israeli security and lead to theft of Israeli technology to be utilized in Chinese espionage further arguing that Israel should balance its burgeoning relations with China with maintaining a balance of relations with the United States at the same time. China eased travel restrictions, while Israel reopened its consulate in Hong Kong (then under British administration), which would serve as the main point for diplomatic and economic contact between the two nations. It also came up in discussions between US National Security Advisor John Bolton and Israeli PM Benjamin Netanyahu when they met on January 7, 2019. Israels separation of its commercial and security technology trade with China, however, is no easy task. RAND reports present research findings and objective analysis that address the challenges facing the public and private sectors. The main Israeli export to China (51%) is electronic components, while Intel is responsible for 80% of exports, including chips made in Israel and sent to China for inspection and assembly. Danit Gal is a consultant and researcher focusing on technology ethics, governance, safety, security, and strategy. U.S. Says Israel Gave Combat Jet Plans to China. World Israel China. [26] China was similarly represented by a branch of the China International Travel Service, which also opened in 1990. Dec. 28, 1994 12 AM PT. The government of Israel has been eager to negotiate a deal with China completed in the hope that an influx of foreign workers will increase the rate of housing construction in Israel and reduce the costs of new homes. Surprisingly, they seem to have tried to mask their attack trying to use Farsi and deploy countermeasures to make it seem that the attack originated in Iran. The report concludes with a set of open-ended questions that merit further investigation to better understand the magnitude of risks associated with Chinese investment in the Israeli market. As early as 2017, the USNational Security Strategypointed to China as its top priority, innovation as a pillar of national security, and the key technologies for the future as an essential front in the Great Power competition. The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. If tensions escalate further, Israel could risk finding its American and Chinese trade partners less forgiving of its delicate balance. INSS Insight No. As research shows, China's global tech transfer enterprise includes legal and illicit efforts, espionage and theft, business activity as well as academic relations, expanding well beyond investment. click the link in that email to complete your registration. Chinese capital investment and R&D centers may be underrepresented, however, because Chinese capital is ofteninvestedvia Israeli funds. [28], During the 2014 IsraelGaza conflict, it was reported that Israel was winning the public opinion battle in China with most Chinese social media users siding with Israel. What are the security implications of Chinese investments in Israeli technology and infrastructure? The former head of Mossad, Efraim Halevy, is one of the major critics in Israel who believes that the country should examine the geopolitical considerations with China and has consistently warned the Israeli government against involving the Chinese in the Red-Med project, arguing that it could lead to a crisis in strategic relations with the United States. [135], On November 29, 2012, China voted in favor of UN General Assembly Resolution 67/19 Palestine to non-member observer state status in the United Nations. Amid a rift with the U.S. over Israeli sales of military technology to China, Israel adopted defense export restrictions in 2006. May 31, 2021, 12:24 pm. [27], Prime Minister Benjamin Netanyahu visited China in May 2013 and five agreements were signed during his visit. And it has often accused China of engaging in such activity through attacks against American companies to steal commercially valuable intellectual property data such as corporate strategies, product designs, business negotiations, and dual-use technology-related data. On May 25, 2015, the Israeli Trade Authority signed an Authorized Economic Operator (AEO) agreement that simplifies customs and approval procedures for Chinese exporters to Israel. The authors examine the extent and nature of Chinese investments in Israeli technology and infrastructure and discuss the security implications these pose for Israel and the United States. [17] Shared commonalities and similarities between the cultures and values of the two nations, ancient roots as well as convergence of interests have driven the two countries closer with respect to scientific, economic, diplomatic and cultural ties. "[128][129] The case was later settled in which Israel won the lawsuit in July 2014. China ultimately supported this resolution, although initially, due to the strong bilateral relations and nuclear cooperation between the China and Iran, China opposed the sanctions. Relations between China and Israel have expanded rapidly since the early 2000s in numerous areas, including diplomacy, trade, investment, construction, educational partnerships, scientific cooperation, and tourism. [10] Some commentators note similarities between the cultures and values of the two nations. Bilateral military relations have evolved from an initial Chinese policy of secret non-official ties to a close strategic partnership with the modern and militarily powerful Israel. [80] Investment from China in Israeli technology reached an aggregate of $15 billion from 2011 to 2017 with the surplus of Chinese investment capital finding its way through Israel's high technology sector, including agriculture, pharmaceutical, medical devices, artificial intelligence and autonomous driving. "Israel can be a partner, a junior partner, but a perfect partner for China in the development of a variety of technologies that change the way we live, how long we live, how healthy we live . In response to these persistent attempts at stealing hard-earned U.S. intellectual capital from the American experts, the FBI launched the China Initiative program in November 2018, which scrutinized suspected cases of Americans engaged in such espionage activity. Concerned about Chinas potential use of advanced airborne early-warning (AEW) radar systems, the United States dissuaded Israel from lucrative arms deals in 2000 and 2005, souring Chinese-Israeli security trade relations. According to Wray, in 2020, the FBI opened a China-related counterintelligence case every ten hours on average. He was extradited from Belgium in 2018, and his trial began in October 2021. ", "China seeks strategic foothold in Israel | World | DW | 24.03.2014", "Chinese-Israeli Economic Alliance Is Going On And Strong | The Kaipule Blog", "China Israel, Why China is interested fostering economic relationships with Israel? "Israel sees China as an opportunity," said Michael Oren, a former Israeli ambassador to Washington. U.S. officials think Chinese access to cutting-edge technologies . More research is needed into the nature of the threat to the United States posed by Chinese acquisition of sensitive technologies from U.S. allies, including, but not limited to, Israel. It takes just a few seconds. Israel seeks to expand its diplomatic, economic, and strategic ties with the world's fastest-growing major economy and diversify its export markets and investments. According to analysis from the Jamestown Foundation, China's policy on Israel and Palestine is based on soft power diplomacy, and maintain a balancing act between its Israeli and Arab world ties. 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